The markets fell today, led by plunging financials and bank stocks, despite a solid second-quarter report from Goldman Sachs. "There is a lack of clarity at every level of the financial system right now, from regulators to companies," a floor trader told the Wall Street Journal. The Dow fell 108.78 to 12,160.30, the Nasdaq 17.05 to 2,457.73, and the S&P 500 9.21 to 1,350.93.
While Goldman Sachs reported lower-than-expected losses, other banks were hit hard. Meanwhile, inflation continues to be a serious problem. "It's obvious that the price of food and energy is beginning to hit the consumer, threatening to cut into purchases of other goods and services that drive corporate profits," says the president of a brokerage company.